IFC invests $135 million in Holmarcom Finance Company to boost growth

Holmarcom Group and the International Finance Corporation (IFC) have successfully established a strategic partnership, marking IFC's acquisition of an 18.62% minority stake in Holmarcom Finance Company (HFC) for MAD 1.35 billion ($135 million). This collaboration comes on the heels of Holmarcom’s recent acquisition of 78.7% of Crédit du Maroc shares from French Crédit Agricole in early June 2024.

The transaction received the necessary approvals from Morocco's regulatory bodies, including Bank Al-Maghrib, the Competition Council, and the Foreign Exchange Office. As a result of this deal, Holmarcom retains a majority position within HFC's capital structure.

This partnership is designed to facilitate HFC’s development initiatives, not only in the Moroccan market but also across key sub-Saharan African territories. The focus is particularly on enhancing growth within the insurance sector and improving credit access for small and medium enterprises, with an emphasis on supporting women-owned businesses and green projects that foster a transition toward a sustainable economy.

“This alliance with IFC reflects our common vision of building a high-performing and sustainable financial sector, serving our clients and African economies,” stated Mohamed Hassan Bensalah, President and CEO of Holmarcom Group. “It marks a new stage in our commitment to offering responsible, high-impact solutions aligned with the transformation challenges facing the Kingdom and the Continent.”

The capital injection comes at a pivotal moment for Holmarcom, which had recently conducted a Public Sale Offer of 11.3% of Crédit du Maroc’s capital valued at MAD 1 billion ($100 million), oversubscribing nearly 18 times and generating MAD 18.06 billion ($1.8 billion) to support the bank’s ambitious “Boost 2028” plan.

In addition to the capital investment, HFC will benefit from advisory support from IFC to enhance its sustainability governance framework. This guidance aims to help HFC effectively integrate environmental and social considerations into its operational strategy, thereby generating tangible positive impacts across its service areas.

The strategic alliance builds upon an existing partnership between Holmarcom and IFC, initiated in 2021, which focused on improving insurance access throughout Morocco and sub-Saharan Africa.